Exhibit 99.1
 (GRAPHIC)
    
    Apollo Group, Inc.

News Release
 APOLLO GROUP, INC. REPORTS FISCAL 2011 THIRD QUARTER RESULTS
    Unaudited Third Quarter of Fiscal 2011 Results of Operations
   1




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Policemans Annuity and Benefit
Fund of Chicago
  Operating Expenses
     2




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Financial and Operating Metrics
  3




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Q3 2011
    
    
    Q3 2010Revenues (in thousands)Degree Seeking Gross Revenues(1)
    
    $
    1,166,880
    
    
    $
    1,261,258Less: Discounts and other
    
    
    (66,888
    )
    
    
    (60,441
    )Degree Seeking Net Revenues(1)
    
    
    1,099,992
    
    
    
    1,200,817Non-degree Seeking Revenues(2)
    
    
    11,365
    
    
    
    12,502Other, net of discounts(3)
    
    
    124,480
    
    
    
    124,085$
    1,235,837
    
    
    $
    1,337,404Revenue by Degree Type (in thousands)(1)Associates
    
    $
    356,344
    
    
    $
    464,373Bachelors
    
    
    592,258
    
    
    
    551,808Masters
    
    
    194,365
    
    
    
    221,718Doctoral
    
    
    23,913
    
    
    
    23,359Less: Discounts and other
    
    
    (66,888
    )
    
    
    (60,441
    )$
    1,099,992
    
    
    $
    1,200,817Degreed Enrollment (rounded to hundreds)(4)Associates
    
    
    147,900
    
    
    
    212,100Bachelors
    
    
    184,500
    
    
    
    186,400Masters
    
    
    58,500
    
    
    
    70,400Doctoral
    
    
    7,500
    
    
    
    7,600398,400
    
    
    
    476,500Degree Seeking Gross Revenues per Degreed Enrollment(1), (4)Associates
    
    $
    2,409
    
    
    $
    2,189Bachelors
    
    
    3,210
    
    
    
    2,960Masters
    
    
    3,322
    
    
    
    3,149Doctoral
    
    
    3,188
    
    
    
    3,074All degrees (after discounts)
    
    $
    2,761
    
    
    $
    2,520New Degreed Enrollment (rounded to hundreds)(5)Associates
    
    
    23,400
    
    
    
    50,200Bachelors
    
    
    24,000
    
    
    
    31,700Masters
    
    
    7,900
    
    
    
    11,300Doctoral
    
    
    700
    
    
    
    90056,000
    
    
    
    94,100
 
 (1)
    
    Represents revenue from tuition and other fees for students enrolled in University of Phoenix degree programs. Also includes revenue from tuition and other fees for students
participating in University of Phoenix certificate programs of at least 18 credits in length with some course applicability into a related degree program.(2)
    
    Represents revenue from tuition and other fees for students participating in University of Phoenix certificate programs less than 18 credits in length, certificate programs with no
applicability into a related degree program, single course and continuing education courses.(3)
    
    Represents revenues from IPD, CFFP, Apollo Global  BPP, Apollo Global  Other and other.(4)
    
    Represents:

    students enrolled in a University of Phoenix degree program who attended a credit bearing course during the quarter and had not graduated as
of the end of the quarter;

    students who previously graduated from one degree program and started a new degree program in the quarter (for example, a graduate of the
associates degree program returns for a bachelors degree or a bachelors degree graduate returns for a masters degree); and

    students participating in certain certificate programs of at least 18 credits with some course applicability into a related degree program.(5)
    
    Represents:

    new students and students who have been out of attendance for more than 12 months who enroll in a University of Phoenix degree program
and start a credit bearing course in the quarter;

    students who have previously graduated from a degree program and start a new degree program in the quarter; and

    students who commence participation in certain certificate programs of at least 18 credits with some course applicability into a related degree
program. 4




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Unaudited First Nine Months of Fiscal 2011 Results of Operations
  Policemans Annuity and Benefit Fund of Chicago
  Unaudited Balance Sheet
  5




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Share Repurchases
  Business Outlook
   
    
    Consolidated net revenue of $4.65-$4.75 billion; and
    
    Operating income, excluding the impact of special items, of $1.15-$1.20 billion.
  
    
    Consolidated net revenue of $4.00-$4.25 billion; and
    
    Operating income, excluding the impact of special items, of $675-$800 million.
 Conference Call Information
 www.apollogrp.edu
 6




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About Apollo Group, Inc.
  www.apollogrp.edu
 Forward-Looking Statements Safe Harbor
 http://www.apollogrp.edu
 Use of Non-GAAP Financial Information
  7




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8




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Apollo Group, Inc. and Subsidiaries  Condensed Consolidated Balance Sheets
 As ofMay 31,
    
    
    August 31,($ in thousands)
    
    2011
    
    
    2010ASSETS:Current assetsCash and cash equivalents
    
    $
    1,426,346
    
    
    $
    1,284,769Restricted cash and cash equivalents
    
    
    376,474
    
    
    
    444,132Accounts receivable, net
    
    
    227,171
    
    
    
    264,377Deferred tax assets, current portion
    
    
    148,052
    
    
    
    166,549Prepaid taxes
    
    
    15,605
    
    
    
    39,409Other current assets
    
    
    47,215
    
    
    
    38,031Assets held for sale from discontinued operations
    
    
    
    
    
    
    15,945Total current assets
    
    
    2,240,863
    
    
    
    2,253,212Property and equipment, net
    
    
    520,225
    
    
    
    619,537Long-term restricted cash and cash equivalents
    
    
    
    
    
    
    126,615Marketable securities
    
    
    5,946
    
    
    
    15,174Goodwill
    
    
    132,872
    
    
    
    322,159Intangible assets, net
    
    
    123,525
    
    
    
    150,593Deferred tax assets, less current portion
    
    
    112,643
    
    
    
    99,071Other assets
    
    
    15,778
    
    
    
    15,090Total assets
    
    $
    3,151,852
    
    
    $
    3,601,451LIABILITIES AND SHAREHOLDERS EQUITY:Current liabilitiesShort-term borrowings and current portion of long-term debt
    
    $
    24,153
    
    
    $
    416,361Accounts payable
    
    
    60,071
    
    
    
    90,830Accrued liabilities
    
    
    438,205
    
    
    
    375,461Student deposits
    
    
    404,155
    
    
    
    493,245Deferred revenue
    
    
    311,445
    
    
    
    359,724Other current liabilities
    
    
    40,730
    
    
    
    53,416Liabilities held for sale from discontinued operations
    
    
    
    
    
    
    4,474Total current liabilities
    
    
    1,278,759
    
    
    
    1,793,511Long-term debt
    
    
    171,121
    
    
    
    168,039Deferred tax liabilities
    
    
    32,882
    
    
    
    38,875Other long-term liabilities
    
    
    275,732
    
    
    
    212,286Total liabilities
    
    
    1,758,494
    
    
    
    2,212,711Commitments and contingenciesShareholders equityPreferred stock, no par value
    
    
    
    
    
    
    Apollo Group Class A nonvoting common stock, no par value
    
    
    103
    
    
    
    103Apollo Group Class B voting common stock, no par value
    
    
    1
    
    
    
    1Additional paid-in capital
    
    
    82,572
    
    
    
    46,865Apollo Group Class A treasury stock, at cost
    
    
    (2,805,711
    )
    
    
    (2,407,788
    )Retained earnings
    
    
    4,131,860
    
    
    
    3,748,045Accumulated other comprehensive loss
    
    
    (23,940
    )
    
    
    (31,176
    )Total Apollo shareholders equity
    
    
    1,384,885
    
    
    
    1,356,050Noncontrolling interests
    
    
    8,473
    
    
    
    32,690Total equity
    
    
    1,393,358
    
    
    
    1,388,740Total liabilities and shareholders equity
    
    $
    3,151,852
    
    
    $
    3,601,451
 9




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##### 



Apollo Group, Inc. and Subsidiaries  Condensed Consolidated Statements of Income
 Three Months Ended May 31,
    
    
    % of Revenue(in thousands, except per share data)
    
    2011
    
    
    2010
    
    
    2011
    
    
    2010Net revenue
    
    $
    1,235,837
    
    
    $
    1,337,404
    
    
    
    100.0
    %
    
    
    100.0
    %Costs and expenses:Instructional and student advisory
    
    
    458,145
    
    
    
    441,700
    
    
    
    37.1
    %
    
    
    33.0
    %Marketing
    
    
    161,034
    
    
    
    151,668
    
    
    
    13.0
    %
    
    
    11.3
    %Admissions advisory
    
    
    99,923
    
    
    
    116,344
    
    
    
    8.1
    %
    
    
    8.7
    %General and administrative
    
    
    87,857
    
    
    
    75,362
    
    
    
    7.1
    %
    
    
    5.6
    %Provision for uncollectible accounts receivable
    
    
    39,217
    
    
    
    72,011
    
    
    
    3.2
    %
    
    
    5.4
    %Depreciation and amortization
    
    
    41,125
    
    
    
    36,701
    
    
    
    3.3
    %
    
    
    2.8
    %Estimated litigation loss
    
    
    2,048
    
    
    
    132,600
    
    
    
    0.2
    %
    
    
    9.9
    %Goodwill and other intangibles impairment
    
    
    
    
    
    
    8,712
    
    
    
    
    
    
    
    0.7
    %Total costs and expenses
    
    
    889,349
    
    
    
    1,035,098
    
    
    
    72.0
    %
    
    
    77.4
    %Operating income
    
    
    346,488
    
    
    
    302,306
    
    
    
    28.0
    %
    
    
    22.6
    %Interest income
    
    
    867
    
    
    
    827
    
    
    
    0.1
    %
    
    
    0.1
    %Interest expense
    
    
    (2,383
    )
    
    
    (1,979
    )
    
    
    (0.2
    %)
    
    
    (0.2
    %)Other, net
    
    
    (1,862
    )
    
    
    (1,312
    )
    
    
    (0.1
    %)
    
    
    (0.1
    %)Income from continuing operations before income taxes
    
    
    343,110
    
    
    
    299,842
    
    
    
    27.8
    %
    
    
    22.4
    %Provision for income taxes
    
    
    (130,385
    )
    
    
    (122,390
    )
    
    
    (10.6
    %)
    
    
    (9.1
    %)Income from continuing operations
    
    
    212,725
    
    
    
    177,452
    
    
    
    17.2
    %
    
    
    13.3
    %Income from discontinued operations, net of tax
    
    
    540
    
    
    
    2,084
    
    
    
    0.1
    %
    
    
    0.1
    %Net income
    
    
    213,265
    
    
    
    179,536
    
    
    
    17.3
    %
    
    
    13.4
    %Net income attributable to noncontrolling interests
    
    
    (825
    )
    
    
    (253
    )
    
    
    (0.1
    %)
    
    
    Net income attributable to Apollo
    
    $
    212,440
    
    
    $
    179,283
    
    
    
    17.2
    %
    
    
    13.4
    %Earnings per share  Basic:Continuing operations attributable to Apollo
    
    $
    1.52
    
    
    $
    1.17Discontinued operations attributable to Apollo
    
    
    
    
    
    
    0.02Basic income per share attributable to Apollo
    
    $
    1.52
    
    
    $
    1.19Earnings per share  Diluted:Continuing operations attributable to Apollo
    
    $
    1.51
    
    
    $
    1.16Discontinued operations attributable to Apollo
    
    
    
    
    
    
    0.02Diluted income per share attributable to Apollo
    
    $
    1.51
    
    
    $
    1.18Basic weighted average shares outstanding
    
    
    139,856
    
    
    
    151,127Diluted weighted average shares outstanding
    
    
    140,343
    
    
    
    152,291
 10




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Apollo Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
 Nine Months Ended May 31,
    
    
    % of Revenue(in thousands, except per share data)
    
    2011
    
    
    2010
    
    
    2011
    
    
    2010Net revenue
    
    $
    3,610,901
    
    
    $
    3,666,399
    
    
    
    100.0
    %
    
    
    100.0
    %Costs and expenses:Instructional and student advisory
    
    
    1,335,601
    
    
    
    1,287,833
    
    
    
    37.0
    %
    
    
    35.1
    %Marketing
    
    
    484,392
    
    
    
    444,593
    
    
    
    13.4
    %
    
    
    12.1
    %Admissions advisory
    
    
    315,958
    
    
    
    349,767
    
    
    
    8.8
    %
    
    
    9.6
    %General and administrative
    
    
    257,075
    
    
    
    214,821
    
    
    
    7.1
    %
    
    
    5.9
    %Provision for uncollectible accounts receivable
    
    
    141,666
    
    
    
    208,593
    
    
    
    3.9
    %
    
    
    5.7
    %Depreciation and amortization
    
    
    117,369
    
    
    
    106,625
    
    
    
    3.3
    %
    
    
    2.9
    %Estimated litigation loss
    
    
    4,503
    
    
    
    177,100
    
    
    
    0.1
    %
    
    
    4.8
    %Goodwill and other intangibles impairment
    
    
    219,927
    
    
    
    8,712
    
    
    
    6.1
    %
    
    
    0.2
    %Restructuring
    
    
    3,846
    
    
    
    
    
    
    
    0.1
    %
    
    
    Total costs and expenses
    
    
    2,880,337
    
    
    
    2,798,044
    
    
    
    79.8
    %
    
    
    76.3
    %Operating income
    
    
    730,564
    
    
    
    868,355
    
    
    
    20.2
    %
    
    
    23.7
    %Interest income
    
    
    2,635
    
    
    
    2,284
    
    
    
    0.1
    %
    
    
    0.1
    %Interest expense
    
    
    (6,207
    )
    
    
    (8,107
    )
    
    
    (0.2
    %)
    
    
    (0.2
    %)Other, net
    
    
    (1,603
    )
    
    
    (2,061
    )
    
    
    
    
    
    
    (0.1
    %)Income from continuing operations before income taxes
    
    
    725,389
    
    
    
    860,471
    
    
    
    20.1
    %
    
    
    23.5
    %Provision for income taxes
    
    
    (376,016
    )
    
    
    (341,435
    )
    
    
    (10.4
    %)
    
    
    (9.3
    %)Income from continuing operations
    
    
    349,373
    
    
    
    519,036
    
    
    
    9.7
    %
    
    
    14.2
    %Income (loss) from discontinued operations, net of tax
    
    
    2,487
    
    
    
    (8,854
    )
    
    
    
    
    
    
    (0.3
    %)Net income
    
    
    351,860
    
    
    
    510,182
    
    
    
    9.7
    %
    
    
    13.9
    %Net loss attributable to noncontrolling interests
    
    
    31,955
    
    
    
    1,849
    
    
    
    0.9
    %
    
    
    0.1
    %Net income attributable to Apollo
    
    $
    383,815
    
    
    $
    512,031
    
    
    
    10.6
    %
    
    
    14.0
    %Earnings (loss) per share  Basic:Continuing operations attributable to Apollo
    
    $
    2.67
    
    
    $
    3.40Discontinued operations attributable to Apollo
    
    
    0.02
    
    
    
    (0.06
    )Basic income per share attributable to Apollo
    
    $
    2.69
    
    
    $
    3.34Earnings (loss) per share  Diluted:Continuing operations attributable to Apollo
    
    $
    2.66
    
    
    $
    3.37Discontinued operations attributable to Apollo
    
    
    0.02
    
    
    
    (0.06
    )Diluted income per share attributable to Apollo
    
    $
    2.68
    
    
    $
    3.31Basic weighted average shares outstanding
    
    
    142,845
    
    
    
    153,345Diluted weighted average shares outstanding
    
    
    143,222
    
    
    
    154,506
 11




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##### 



Apollo Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows From Continuing and Discontinued Operations
 Nine Months Ended May 31,($ in thousands)
    
    2011
    
    
    2010Cash flows provided by (used in) operating activities:Net income
    
    $
    351,860
    
    
    $
    510,182Adjustments to reconcile net income to net cash provided by operating activities:Share-based compensation
    
    
    50,453
    
    
    
    46,236Excess tax benefits from share-based compensation
    
    
    (1,214
    )
    
    
    (6,427
    )Depreciation and amortization
    
    
    117,369
    
    
    
    108,033Amortization of lease incentives
    
    
    (10,523
    )
    
    
    (9,942
    )Impairment of discontinued operations
    
    
    
    
    
    
    9,400Goodwill and other intangibles impairment
    
    
    219,927
    
    
    
    8,712Amortization of deferred gains on sale-leasebacks
    
    
    (1,491
    )
    
    
    (1,294
    )Non-cash foreign currency loss, net
    
    
    1,767
    
    
    
    931Provision for uncollectible accounts receivable
    
    
    141,666
    
    
    
    208,593Estimated litigation loss
    
    
    4,503
    
    
    
    177,100Deferred income taxes
    
    
    (3,327
    )
    
    
    (69,571
    )Changes in certain assets and liabilities, excluding the impact of disposition:Accounts receivable
    
    
    (81,215
    )
    
    
    (175,845
    )Prepaid taxes
    
    
    21,218
    
    
    
    35,203Other assets
    
    
    (13,955
    )
    
    
    (8,223
    )Accounts payable and accrued liabilities
    
    
    13,117
    
    
    
    (59,413
    )Student deposits
    
    
    (89,944
    )
    
    
    897Deferred revenue
    
    
    (60,763
    )
    
    
    5,796Other liabilities
    
    
    21,446
    
    
    
    24,412Net cash provided by operating activities
    
    
    680,894
    
    
    
    804,780Cash flows provided by (used in) investing activities:Additions to property and equipment
    
    
    (119,726
    )
    
    
    (108,316
    )Maturities of marketable securities
    
    
    10,000
    
    
    
    Change in restricted cash and cash equivalents
    
    
    194,273
    
    
    
    (49,924
    )Proceeds from sale-leaseback
    
    
    169,018
    
    
    
    Proceeds from disposition
    
    
    9,612
    
    
    
    Net cash provided by (used in) investing activities
    
    
    263,177
    
    
    
    (158,240
    )Cash flows provided by (used in) financing activities:Payments on borrowings
    
    
    (425,325
    )
    
    
    (424,775
    )Proceeds from borrowings
    
    
    11,682
    
    
    
    17,824Issuance of Apollo Group Class A common stock
    
    
    10,240
    
    
    
    18,209Apollo Group Class A common stock purchased for treasury
    
    
    (408,220
    )
    
    
    (341,161
    )Noncontrolling interest contributions
    
    
    6,875
    
    
    
    2,460Excess tax benefits from share-based compensation
    
    
    1,214
    
    
    
    6,427Net cash used in financing activities
    
    
    (803,534
    )
    
    
    (721,016
    )Exchange rate effect on cash and cash equivalents
    
    
    1,040
    
    
    
    (1,789
    )Net increase (decrease) in cash and cash equivalents
    
    
    141,577
    
    
    
    (76,265
    )Cash and cash equivalents, beginning of period
    
    
    1,284,769
    
    
    
    968,246Cash and cash equivalents, end of period
    
    $
    1,426,346
    
    
    $
    891,981Supplemental disclosure of cash flow informationCash paid for income taxes, net of refunds
    
    $
    326,999
    
    
    $
    356,570Cash paid for interest
    
    $
    8,063
    
    
    $
    5,292Supplemental disclosure of non-cash investing and financing activitiesCredits received for tenant improvements
    
    $
    12,047
    
    
    $
    16,026Unsettled purchase of Class A common stock for treasury
    
    $
    11,802
    
    
    $
    Accrued purchases of property and equipment
    
    $
    6,585
    
    
    $
    9,190Restricted stock units vested and released
    
    $
    3,614
    
    
    $
    4,938
 12




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##### 



Apollo Group, Inc. and Subsidiaries  Reconciliation of GAAP financial information to non-GAAP financial information
 Three Months Ended May 31,
    
    
    Nine Months Ended May 31,(in thousands, except per share data)
    
    2011
    
    
    2010
    
    
    2011
    
    
    2010Net income attributable to Apollo, as reported
    
    $
    212,440
    
    
    $
    179,283
    
    
    $
    383,815
    
    
    $
    512,031Income (loss) from discontinued operations, net of tax
    
    
    540
    
    
    
    2,084
    
    
    
    2,487
    
    
    
    (8,854
    )Income from continuing operations attributable to Apollo
    
    
    211,900
    
    
    
    177,199
    
    
    
    381,328
    
    
    
    520,885Reconciling items:Estimated litigation loss(1)
    
    
    2,048
    
    
    
    132,600
    
    
    
    4,503
    
    
    
    177,100Goodwill and other intangibles impairment, net of noncontrolling

interest(2)
    
    
    
    
    
    
    7,457
    
    
    
    188,258
    
    
    
    7,457Restructuring(3)
    
    
    
    
    
    
    
    
    
    
    3,846
    
    
    
    2,048
    
    
    
    140,057
    
    
    
    196,607
    
    
    
    184,557Less: tax effects, net of noncontrolling interest
    
    
    (801
    )
    
    
    (52,700
    )
    
    
    (7,715
    )
    
    
    (70,328
    )Tax benefit from IRS settlement(4)
    
    
    (9,646
    )
    
    
    
    
    
    
    (9,646
    )
    
    
    (11,356
    )Income from continuing operations attributable to Apollo, adjusted
to exclude special items
    
    $
    203,501
    
    
    $
    264,556
    
    
    $
    560,574
    
    
    $
    623,758Diluted income per share from continuing operations attributable to
Apollo, as reported
    
    $
    1.51
    
    
    $
    1.16
    
    
    $
    2.66
    
    
    $
    3.37Diluted income per share from continuing operations attributable to
Apollo, adjusted to exclude special items
    
    $
    1.45
    
    
    $
    1.74
    
    
    $
    3.91
    
    
    $
    4.04Diluted weighted average shares outstanding
    
    
    140,343
    
    
    
    152,291
    
    
    
    143,222
    
    
    
    154,506
 
 (1)
    
    These charges represent estimated losses associated with the Securities Class Action (Policemans Annuity and Benefit Fund of Chicago).(2)
    
    The $188.3 million charge for the nine months ended May 31, 2011 represents impairments of BPPs goodwill and other intangible assets, net of noncontrolling interest. The $7.5 million charge for the three and nine months ended May 31, 2010 represents
an impairment of ULAs goodwill, net of noncontrolling interest. The Company did not record a tax benefit associated with either goodwill impairment because the goodwill is not deductible for tax purposes.(3)
    
    The $3.8 million charge for the nine months ended May 31, 2011 represents a charge associated with a strategic reduction in force at University of Phoenix during the first quarter of fiscal year 2011.(4)
    
    The $9.6 million tax benefit for the three and nine months ended May 31, 2011 resulted from resolution with the Internal Revenue Service regarding the deductibility of payments made to settle a lawsuit in fiscal year 2010. The $11.4 million tax
benefit during the nine months ended May 31, 2010 resulted from a settlement of disputed tax issues with the Internal Revenue Service during the first quarter of fiscal year 2010. Investor Relations Contacts:  beth.coronelli@apollogrp.edu  jeremy.davis@apollogrp.edu
 Media Contact:  media@apollogrp.edu
 13